Knowledge Management and the Creation of Business Value

Knowledge management (KM) initiatives that create business value are a major focus for many organizations. While academics often couch KM success in terms of process outcomes, some argue that the organizational outcomes perspective of KM success held by many practitioners is clearer, where KM success is tied to its impact on organizational performance. This study proposes an integrated model that incorporates both perspectives, in which the business value of KM is the dependent variable and effective KM process implementation is an important antecedent. We also hypothesize that two contextual factors, top management support and organizational culture, are positively related to business value. Data collected from a U.S. national survey of 268 information technology (IT) executives support the significance of these relationships. Furthermore, this research identifies key KM barriers as well as benefits that influence top management support of KM, KM process implementation, and indirectly business value. Practical and research implications are discussed.

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